Weldon Plant stops trading following overdraft slash
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chris.tindattrarbi.co.uk AN ADMINISTRATIVE receiver has been appointed to realise the assets of Corby construction haulier Weldon Plant after its chairman blamed Royal Bank of Scotland (RBS) for cutting its overdraft facility (CM 16 September).
Ian Carr, for insolvency practitioners Grant Thornton, says 113 staff have been made redundant and just a skeleton staff remains on site to help convert property into cash for creditors.
Carr says claims by unsecured creditors will be dealt with by a liquidator when one is appointed, and then only if there is a surplus Weldon had been in negotiations with RBS for months in an attempt to save the business Corby MP Louise Bagshawc has written to the bank twice demanding to know why it gave no warning it was cutting the company's overdraft by a third, despite it still apparently having "full order books" (CM 16 September).
A spokesman at Bagshawe's Westminster office says RBS has now replied, but adds:"[Bagshawe] still has her reservations about banks' behaviour and has received messages from other constituents who feel banks change their terms of finance at short notice. Louise is seeking to find out more about this and has written to relevant Secretaries of State."
Can tells CM: The directors decided they shouldn't continue to trade and therefore took steps to effectively stop trading and send people home. The main assets are a substantial amount of plant and machinery plus a freehold property."
Bidding for the online auction of Weldon's vehicles, being handled by King Sturge, is due to close today (7 Oct) at lpm.
Patrick Ditcham, plant and machinery partner at King Sturge, tells CM: "The fleet is among the best maintained I've seen in recent years and there are some real gems on offer."
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